Real Estate Information

If you haven't yet read 10 February 2008 article in the Hartford Courant, The Greening of the House Hunt, you can click the title to read it right at the Hartford Courant website.

It points out that its just as difficult to find a green realtor who knows what s/he is doing as it is to find a green home in CT. Inventory of green, eco-friendly, and zero-energy homes in New England are scarce. Builders with new inventory do what they know how to do, build traditionally, and green and zero-energy building in general remains as just rhetoric and cliché to them. They fail to realize to build green and with higher energy efficiency would differentiate their inventory from the ho-hum masses. It would motivate a buyer looking at resale homes to look at new homes. Especially if the buyer knew it would cost 50-80% less in energy costs year after year. This is the main reason I founded My Easy Green Home last year.

Currently I am working with 4 clients who are looking for existing green and energy efficient homes. Each customers motivation differs slightly and finding what they want is a challenge. There just isn't a lot out there to begin with and those who own such homes are sellng. There's no easy was to find them in the existing inventory in the professional MLS, however a recent communication I had with the CEO of the CT Statewide MLS was upbeat. The additional of fields helping agents identify such properties will be discussed in the near future and hopefully be added to the statewide MLS within the year. Perhaps I am a bit optimistic, but how else should I think about it? Although I have my methods using smart comment searching to find homes in the MLS, it'd be nice to have them as standard and defined fields.

The clients I am working with right now have mostly prioritized my search on their behalf to:
1. Finding an existing green home;
2. Find one that has the bones and siting to be renovated into one;
3. Find the right site in their desired target area and build from the ground up.

Climate change and the media's recent attention to green thinking is helping everyone become more aware that the status quo cannot continue. A client looking for land this week in our office asked her agent for the name of a "green" builder to build her new home. The general public is beginning to get it. You don't have to be an environmentalist to like not having to pay high energy bills or live in a healthy home.

Some think the house they'd have to build will look like a hippy dome home or something unappealing. That's simply not true! To the world your home will look the same as a conventional home you'd have designed, but to you it will make a world of difference. For instance there are new solar panels available that look just like regular roofing shingle. Now those who want the benefit of solar but don't want to see the traditional panels on their roof can have it both ways. Green is here to stay and its a matter of time for the masses to step up to do whatever they can do passively and actively to lower their energy bills and make a contribution to lower their carbon footprint.

If you haven't yet visited My Easy Green Home please do so.

Although the site is in its infancy and being added to as time goes on, the team and know how is in place to build for you right now! If the customer elects to do enough passive and active means to getting the house to a 75% improved efficiency, the builder will pay for the 1st two years of energy bills. (The terms and limits are being worked on to be fair to all). I have assembled a team of professionals with the experience and know how to simply building your next house green.

I am constantly educating myself on how to build or refit existing homes to be green and energy efficient. I have many links dedicated to the subject here on my site. You can learn about LEEDs requirements, to local and national tax credits and rebates, to sites on various building materials used to accomplish the goal and task. If you have a useful article, link, or any information that I could post on this site, please contact me. I will look forward to your contributions.

This is my first post of the year. I took some time off at the end of the year to recharge my batteries. Now that I am energized for 2008 I am excited as ever to get back to work. I don't like resolutions, however I do have a plan for year. First and foremost is my orientation towards green and zero energy real estate. The enigma for New England is why isn't there any to buy? New England's climate is far harsher than the west coast and yet we're so far behind. So far around these parts its remained rhetoric and cliché. You'd think that crude at $100 would motivate some of us...but not really. One thing for sure is that some don't get what "green" building is or "zero energy" homes are and how to get there. I asked some people to tell me what they thing green building is and some actually thought it was building with pressure treated (green) lumber. I created myeasygreenhome.com (the site is under construction but the team is up and can produce a green zero energy home today) to give people in CT an easy way to get the job done. I formed a team of professionals that can handle everything from locating and buying the building site, to the design and execution of their new home. My goal for 2008 is to blog upon the subject ad nauseum with an eye on educating the people in my market about the importance to think green, build efficient homes using the latest techniques available. I want to keep my finger on the pulse of the LEEDs certification and share what's going on in that vain as well.

So let's say you want to build a "zero energy" green home. Here's how we'd simplify the process and justify your investment in advance of putting a shovel in the ground:

1. Do you have land and/or building site? If not, we'll assist you in finding the right site.

2. Do you have a house design or plans? If yes, go to step 3. If not, we'll design your home from the ground up or revise an existing plan you like.

3. Baseline analysis. Here we determines the energy performance for a given home. During this process we will either use a given set of plans and specifications, or a given set of plans and energy code level (i.e. IECC 2004) to determine the baseline energy performance of the home. This baseline is later used to help calculate costs and benefits for energy performance improvements, and the availability of certain tax credits and rebates.

4. Recommendations. Using a combination of architectural, energy modeling, and fluid modeling software, we will generate design and system recommendations which will increase the energy performance.

5. Facilitate Final Choices. Based on your budget and desires, we finalize your selections into the final building plan.

6. Forecast of Utility Costs of Final Plans. We now take the final construction documents and use them to forecast the new plans utility bills. This forecast will be used to identify available tax credits and rebates.

7. Analyze Financial Incentives. We analyze and identify all available tax credits and rebates. Some credits and rebates are applied for by you, the homeowner, some are available only through us, the builder. Once all tax credits and rebates are identified, we will provide the information necessary for you the to obtain your tax credits and rebates. Those tax credits obtained by My Easy Green Home and our subcontractors are reflected in the final cost of your new home.

8. If we build it, you'll be happy. At this point we will have all the specifications, plans, and designs to build your home which will pay you back year after year.

We build ANYWHERE in CT, RI, and MA including Block Island, Martha's Vineyard, and Nantucket.

I recently met a new client from out of state on the internet. During our email communications this person shared with me that her family was rooted in Essex many years ago. I asked if I could share one of her remarkable stories on my blog and was given permission to do so. Below is the story of her grandfather, Ashley Young. I hope you enjoy it:

My grandfather's name was William Ashley Young. He was born in 1883. His mother moved him and his older siblings to New York, I believe in the 1890s. There is one story my grandfather liked to tell about one of his older brothers, Alexander. I find it hard to actually believe - but nevertheless. Apparently my great-uncle Alexander was a bit of a wild one when he was young. One night Uncle Alexander and a few of his co-horts decided to play a prank on the town of Essex. They got a hold of someone's outhouse, moved it and placed it on top of the Congregational Church steeple - on that hill at the head of Main Street. The people of Essex woke up the next morning to an outhouse on the top of the Congregational Church! According to my grandfather. It was shortly after that that my great-grandmother decided her children needed something different and moved them to the big city! Again, according to my grandfather.

My grandfather loved Essex, returned as often as he could and when he retired from his job in Manhattan, moved permanently to what had been his summer house in Westbrook. My parents were divorced when I was very young and my mother and I lived with my grandparents - so I grew up in Westbrook in their former summer house.

We just stopped off in Westbrook on our way back from New York. My grandparents and my mother are buried in Cypress Cemetery - on the Essex Road. We put wreaths on their graves.

A lot of folks want to wait for the "spring" market and I am here to tell you that your buyer might miss you if you wait out winter as sales happen every month of the year. Some properties even show better in the winter. For instance, your view to water may improve or only be evident during this time of year. My opinion is don't wait. If you want to sell then put it out there. Here are some tips winter selling.

When it comes to winter, or when a property is vacant, it is critical to prepare properties as seasons change. Vacant properties need weekly checkups to be sure the heat or air-conditioning is functioning properly. Buyers must be comfortable when viewing the premises.

Regular exterior care must be a considered: like regular lawn care, mailbox checks, newspaper pickups, and flyers. It is important for a property to look and feel cared for. Sellers should do everything they can to make their homes stand out in this slower season. Simple additions like seasonal wreaths, additional sidewalk or outdoor lighting in darker winter months may help a property show more attractively.

It’s also important to consider when your photos are taken for your home and it’s virtual tour – meaning you don’t want full-leafed trees from July as an exterior photo for a home on the market in December, It’s a dead give away as to the house being on the market a long time.

Buyers should test all systems – especially in vacant homes. Check the air conditioning and heating systems, water, dishwashers, hot water heaters, and anything else. Drainage issues should be checked out as well. A little homework up front will go a long way here.

We also recommend that buyers make any offer contingent on an approved home inspection. Professional home inspectors know exactly what to look for, and we have a number of inspectors we can recommend.

The current buyer's market, especially after the lending crisis, has created some unexpected attitudes from both buyers and sellers. There has no doubt been some price adjustments in asking and selling prices of homes over the past year or so. Our market area has not suffered like other areas of the country, but the competition for the shrinking pool of buyers is still putting pressure on those selling today.

That said, a lot of sellers are quietly (at first) in a resentful place. Everyone thinks their bricks and mortar are worth more than the next person's which make it even more difficult for seller's to get their arms around the price they've got to settle for to sell their home. Most sellers on the market today are not moving for the heck of it. They're having to sell due to marriage or the opposite of marriage, growing family, downsizing, job, financial reasons, and the like. Its simply not 2004...they're one of many, many choices regardless of price point.

That said, those who are most serious have improved their home to put it on the market at its best, taken the advice of professional stagers and their agent, and have priced their home to just over what their bottom line is. Those who have to sell fast have to price under the market so it shows up on more buyer's radar. Buyer's who really can get financing today know they're in the drivers seat and are in high demand. They have tons of choices. You'd think that with the great deals that can be had that they'd be a bit cordial and grateful. But that's not what I have been experiencing.

Buyers are sometimes getting 10% off the asking price and some additional seller's concessions, and they want even more, even after agreements have been reached either verbally or written. This sets the deal onto a acrimonious and contentious course. Both sides take a dislike to each other early on even though they've never met. Agents, try as they might, attempt to keep things unemotional and win-win, but we're only human.

In 2004 sellers were being cruel and unfair towards buyers and now its payback time. However, what ever happened to common decency and people wanting a win-win deal? In any market buyers and sellers need each other to get to the closing table. There's too much of an eBay mentality here. You know the person who gets emotionally caught up in bidding and pays to much to "win" the item? Its only afterwards when they realize the seller and the losing bidders won because they've paid way too much. In a real estate deal its the buyer who pulls out of a deal on a house they've negotiated to 10% under market for a $250 dispute even after they've spent hundreds on inspections. The next morning when they think about how they've "won" it becomes clear...no they didn't win.

My advice to buyers and sellers alike are to reach for a win-win, cordial deal. A deal where everyone is more than happy to show up at the closing. I can't tell you how often these days the sellers pre-sign and don't show up so as not to meet the "idiots" that bought their house. Most of my deals have been very win-win and happy experiences for all involved. Lately...that kind of deal is becoming more and more rare.

Some say, who cares, its business and a negotiation. I say, yes it is, however, there are many contingencies most deals need to clear and if things are strained and you need to extend a mortgage date, or want to work out some other issue that could kill the deal, its unlikely to happen because of the posture and tact the parties decided to take early on.

I love this business because I love to meet new people, work with the public, solve problems, and to make the selling and buying process an experience to reflect fondly on. The latter is becoming more and more difficult. I am hoping I can prevail with positive, win-win deals by managing both my buyer's and seller's expectations regarding this pitfall.

Today's broadcast interviews Erin Bernette from CNBC. Although she reported that homesales dropped 8% this month nationwide there was a bit of a silver lining to New England's cloud. Existing home sales dropped 27.8% in the west, 18.7% in the south from Texas to the the east coast, 16.2 in the northern midwest, and 13.5% in New England. As I reported in my earlier blog post, locally we're actually ahead 20% in the number of closings.

Existing home prices were another thing all together. Western states showed the largest decline in values at 8.8%, in the south down 5.5%, midwest up 1.4%, and in New England a rise in value at a modest .5%.

The Shoreline and Lower CT River Valley First I apologize for taking so long in reporting our local statistics. You might say I am a victim of my own success. I've been really busy with closings, new contracts, many active buyers, and new listings which had to come first! That said there's great news about our market! Each time I compile our local numbers I am afraid of what I'll see. Each morning on the Today show and CNN the pundits talk about the Real Estate market, the lending crisis, and how this will affect us all. However, 3rd quarter 2007 when compared to 3rd quarter 2006 showed us screaming ahead in the number of closings by 28% with an increase of sales volume of 33%. These numbers are for single family homes in my 23 town service area on the Connecticut shoreline and the lower Connecticut River Valley. This is why we continually say that real estate is truly a local market. So how about what sellers are really getting? My stats show that sellers are getting between 90 % and 97% of asking price. The only exception I see is Lyme/Hadlyme at 86%. I mentioned last month that it might be that the average asking pricing is well into the 7 figures and there's more movement in price in the upper end than in the lower end. There were 510 new listings added to the inventory last month bringing out total single family home inventory to 1,587. I reported 2,227 in my podcast interview with Joe this month, but that was in error. 2,227 included condos, land, and multi-family listings too. Sorry about that. In closing, the absorption rate jumped from 7.5 to 10.5 months which is on par when looking back at 2006. The absorption rate is the number of months it would take to sell the entire inventory on hand if nothing was added during that time. Another way to look at it is this is the number of months it might take you to sell your home. However, good marketing, preparation, and proper pricing will sell a home way sooner. For example, I was able to bring over 12 prospects to an August listing in E Haddam in the $350K price range, a price point with tons of competitive listings, have put it under contract and will close October 30th. That's just 2 months!

Announcing a company that makes building a zero energy or high performance, green, ecologically sensitive home simple and affordable. To the world your home will look the same. To you, it will make a world of difference. You don't have to be an environmentalist to love not paying energy bills! We will build a home for you that will be 75% to 80% more efficient than a home you might build conventionally. Most think that it will take 15 years to break even before it pays you back, however, our team of financial analysts, green mortgagees, energy designers and engineers, and our builder with 35 building experience will deliver a home where the extra you invest to create eco-friendly, high performance home can be paid up in about 5 years. With the ever rising cost of energy the pay back will just get better and better. I believe that years from now the resale value of our home will be worth more given its energy efficiency. I hope to have our website up and running in the next couple of weeks, but don't let that stop you for calling 860.334.1379 now. If you're in the market to build a new home you owe it to yourself to at least talk to us. WE'RE SO SURE THAT THE HOME WE BUILD FOR YOU WILL BE SO EFFICIENT THAT WE'LL PAY YOUR FIRST TWO YEARS OF ENERGY BILLS!

Monthly Internet Traffic Report Highlights - July 2007 REALTOR.com Unique Visitors: 5.72 M - July ‘07 (6.79 M - July ‘06) 5.29 M - June ‘07 Avg. Minutes per Visit: 14.7 min - July ‘07 (13.8 min - July ‘06) 14.6 min - June ‘07 Avg. Page Views per Visit: 17.3 - July ‘07 (24.9 - July ‘06) 16.9 - June ‘07 Total Visits: 12.6 M - July ‘07 (15.6 M - July ‘06) 11.6 M - June ‘07 Total Page Views: 218 M - July ‘07 (395 M - July ‘06) 197 M - June ‘07 REALTOR.org Unique Visitors: 725,223 - July ‘07 (671,461 - July ‘06) 757,015 - June ‘07 Avg. Minutes per Visit: 7.9 min - July ‘07 (7.9 min - July ‘06) 7.9 min - June ‘07 Avg. Page Views per Visit: 3.9 - July ‘07 (4.1 - July ‘06) 3.9 - June ‘07 Total Visits: 1,050,184 - July ‘07 (999,912 - July ‘06) 1,105,647 - June ‘07 Total Page Views: 4.1 M - July ‘07 (4.1 M - July ‘06) 4.3 M - June ‘07 REALTOR.com Stats Source: comScore Media Metrix (MM). REALTOR.org Stats Source: WebTrends logs, WebTrends Enterprise Edition. Reports 2/07 onward exclude NAR staff traffic.

As I began blogging about the real estate business, which is a labor of love to me, I never thought it would be a place for me to unload what I think is wrong about the industry. I was a real estate investor from a young age, moving in and out of buying and selling properties and managing rentals. I had been doing other investments for a few years and decided to add some investment/rental properties to my portfolio 5 years ago. I hooked up with an agent in Glastonbury who worked for a corporate real estate nameplate, that I still hold in disdain to this day. I won't bore you with too many details but suffice it to say the agent(s) [the deal turned out to be a dual/designated agent deal] looked out for themselves rather than me. They had withheld information material to the property, misrepresented the home and its value as a single family when my due diligence uncovered information to the contrary, and more. I had already spent $650 on inspections and had to kill the deal because I discovered too many seedy things the agent hid and walked away. I reported my experience and displeasure with both the company's listing and selling agent's behavior and unethical dealings and the management supported their thieves and my only recourse was to bring them up on ethics charges to the MLS board. I felt that a waste of time as my findings were that it was more trouble than it was worth and punishments for offenses not stiff enough.

My last statement to my idiot and dishonest agent was that I was going to get my license and show those I served how business should be done. I have been practicing now for just over 3 years with an abundance of success. I have amassed a great deal of unsolicited testimonials and referrals already, have maintained a healthy 6 figure income (ok..just shy of 6 figures at the end of my 1st year) right from the beginning by doing business in a way I simply wanted from the agent who represented me.

I put honesty, integrity, and my client's needs first. Good incomes come from doing a good job and looking out for clients, not your pocket book. I work most every day and am available to my clients from 8am to 8pm daily by email, cell phone, or text message, which ever suits them best. 75% of communications with one of my clients was Blackberry to Blackberry for the purchase of her million dollar home. I give service and attention to every client as though they're my only clients. I provide a level of service that would not only impress me if I were on the other side of the table, but the level of service I wish I could get from any business, but seldom do. I stay up to date on education, the happenings of both the local and national markets and financing, I made it my business to understand financing like I was a mortgage broker so I could employ that knowledge in both marketing seller's homes and negotiating win-win deals for my buyers. I provide 10 times more than the majority of my competitors in the way of marketing including but not limited to professional photography, rich and well design marketing websites, video podcasts to reach the x and y gen customers out there, post listings to Craig's list and similar search venues, use talking house radio transmitters for onsite audio where applicable, mail just listed and just sold 4-color postcards to area residents, create beautiful full color marketing instruments to separate their home from the competition. I use a state of the are website that tracks showing feedback which helps my customers make strategic marketing changes and adjustments to sell for more in a shorter time in a tougher market. Most important...I communicate with my clients personally and often. I try to be present for every showing of my listings rather than just putting a lock box on the door, putting the listing on the MLS and waiting, and much more.

For my buyers, they're automatically tuned it, tapped in, and turned on to finding what they want with my automated system that emails them homes that come to market that fit their criteria. I am available quickly and easily to set up showing tours and help them assess the values of the homes they wish to pursue. They have access to my website that I have spent many dollars and hours making it a resource rich with advice tailored to both buyers, sellers, and relocation customers. I am patient and don't push or pressure them as I know that its not what I say about a house, I am more the catalyst that connects buyers with the homes they connect with and thereafter use my savvy to negotiate great deal, see them through inspections, assist in finding good legal representation, and lending sources that can trust.

So its no wonder when I tell you how frustrating it is to work in a business utilizing these principles to have to, at times, interact with the very kind of agent that was the catalyst for my becoming one. I have 2 such stories to share.

The first one is simply making an appointment for a buyer. I have been working with a woman for almost 2 years and had shown her 50 homes to date (good news...she's soon to make a decision to buy!) and she asked to look at just 3 more homes. I called 2 of the 3 agents who both returned their calls promptly and was more than eager and flexible to meet my client's schedule to view their listings. Good for their clients. These eager, hard working, full-time pros understand the dearth of buyers and did not want to miss an opportunity. Then there's the 3rd agent. Who incidentally works for the corporate bohemoth nameplate that I was disgusted with as a customer myself, only this time it was a their Madison office. I emailed the agent and left 3 voice mails with more than enough time to respond to my request for this client. My email was courteous, professional, and simply asked to show her $1.25M property on the specific day and time and to reply with with confirmation and showing instructions. What I got back at 8pm the day before the showing was a terse, short, and rude reply: "can't show it at noon"

I was dumbfounded. No Mick, or Dear Mick, no sign off, no alternative times that she could show it or even the offer of another day. I called her cell twice more and still no reply by voice or email. The home was simply not shown and the client she serves will never know why her home is not going to get sold. Its unlawful and unethical for me to call the seller directly and now have turned the matter over to my broker for her to handle. This particular agent is a seasoned agent who has either gotten tired of the pace required to do exemplary work, wants to sell her own listings to her own buyers (looking out for her pocketbook rather than the client), or is just gone to part-time and is not covering the time she is off. Whatever the reason, it gives agents like me a bad name and makes me work harder to overcome sour reputation real estate agents have earned with behavior and service like this.

Its my opinion that part-timers have no business in this business. They can't do the job justice. These are folks who want the little nicer car to drive or money for another 2 weeks vacation. Some eventually sell a home, but probably not after creating a negative image of a REALTOR® to some. Its no wonder that there are so many thriving for sale by owner sites, Zillow, and Trulia as a result. The person who hires a part-timer to sell their home or find one for them is paying the same commission and getting much less.

I've decided to make the next story its own post. So look for the post titled Agent/Lender. Conflict of Interest? You decide.